Fine wine prices jumped 5 per cent in November, outpacing gains in both oil and gold. 

After a pause in late summer, wine prices have rocketed as the Christmas period approaches, with high demand from China and Hong Kong.

Monthly volume soared a massive 200 per cent compared to November 2009.

Fine wine has climbed 32.4 per cent so far this year, according to figures from the Bordeaux Index.

This year Chateau Margaux has been a favourite for 2007 and 2008 vintage wine traders in Asia, while Lafite and Mouton Rothschild 2008 prices have experienced the highest rises in Asia after they featured Chinese artwork on their labels.

Despite the recent headlines around the booming gold and oil prices, fine wines outperformed both in the last month, which rose at 2.2 per cent and 3.3 per cent respectively.

Commenting on the increase in the Asian wine market, index founder and managing director Gary Boom, says: ‘We’re already beginning to see the impact of the Chinese Lunar New Year – the year of the rabbit. It’s an incredibly important time on the social and corporate calendar, expensive gift giving is normal and wine lovers across the region are already buying large amounts of top quality vintages to drink and give as presents.’

Dennis Hall, financial adviser at Yellowtail Financial Planning, says wine is not a main stream asset class and it doesn't come without risk.

There are issues of storage and insurange and there can be problems with selling it as there is a cost involved and it's not the same as selling a few shares on the stock market as dealing costs for physical assets are much more expensive.

'For a long-term punt, a case or two of really good wine may well provide good long-term returns. And if they don't you can always drink them' he adds.

To read more about investing in wine, don’t miss the January issue of Money Observer, out in shops on 23 December.